By Tarun 
India has agreed to give over ₹6,300 crore in financial support to help the Maldives overcome its foreign exchange crisis. This decision was made during a meeting between Indian Prime Minister Narendra Modi and Maldives President Mohamed Muizzu. The two leaders discussed strengthening their countries’ relationship and working on a potential trade deal. They also revealed a plan to improve economic cooperation and maritime security.
India will supply radar systems and other equipment to boost the Maldives’ ability to protect its waters. This is important because the Maldives faces threats like illegal fishing, piracy, and drug trafficking.
Prime Minister Modi highlighted India’s long-standing support for the Maldives, emphasizing that India has always been a reliable friend. He announced a $400 million and ₹3,000 crore currency swap agreement, which will help stabilize the Maldivian economy. The two nations will also discuss a free trade agreement and work on trade in their local currencies.
Maldives President Mohamed Muizzu, who previously campaigned to reduce dependence on India, praised India’s assistance. He said India has been a key partner in helping the Maldives with economic development and infrastructure projects. The currency swap deal, he added, will be very helpful in solving the foreign exchange problems his country is facing.
This meeting marked a positive change in the relationship between India and the Maldives after some recent tensions. President Muizzu had earlier called for India to withdraw some of its military personnel from the Maldives. However, both sides are now working to strengthen ties again, with plans to boost tourism, economic cooperation, and security.
India also launched its RuPay Card in the Maldives to promote tourism and economic exchanges. Moreover, India is helping the Maldives with several projects, including housing, airport development, and defense. Both countries agreed to work together on maritime security and disaster response. Additionally, they signed agreements to cooperate on law enforcement, sports, and training of judicial officers.
Modi expressed India’s commitment to always being the Maldives’ first responder in times of need, and President Muizzu invited him to visit the Maldives in 2025 to celebrate the 60th anniversary of diplomatic relations.
By providing significant financial aid and improving cooperation, India and the Maldives aim to strengthen their partnership and ensure peace and stability in the region.